Fewer new wells, more oil in West Texas
American oil companies produced 13.6 million barrels of oil daily last year, once again breaking their own record, according to a report by the Energy Information Administration. Almost half — 6.6 million barrels a day — came from the Permian Basin, the vast stretch of oil-rich deposits spanning tens of thousands of square miles between western Texas and southeastern New Mexico.
Oil companies accomplished the record with a fraction of available drilling rigs, which the industry historically relied on to search for, find and lift fossil fuels from the ground. The EIA, in its report, said fewer rigs could lead to a 2% drop in production in 2027, marking the first time oil could dip since 2021.
Oil companies accomplished the record with a fraction of available drilling rigs, which the industry historically relied on to search for, find and lift fossil fuels from the ground. The EIA, in its report, said fewer rigs could lead to a 2% drop in production in 2027, marking the first time oil could dip since 2021.